LEGO - Five Forces Analysis

LEGO - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size (LEGO) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (LEGO) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Diverse distribution channel (LEGO) The more diverse distribution channels become the less bargaining power a single distributor will...
Volume is critical to suppliers (LEGO) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute is lower quality (LEGO) A lower quality product means a customer is less likely to switch from LEGO to another product or...
Substantial product differentiation (LEGO) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (LEGO) Limited number of substitutes means that customers cannot easily switch to other products or...

Bargaining Power of Customers

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Product is important to customer (LEGO) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (LEGO) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (LEGO) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (LEGO) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (LEGO) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (LEGO) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (LEGO) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (LEGO) If existing competitors have the best geographical locations, new competitors will have a...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to lego's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up lego's most important five forces statements.